In today’s world, having financial security is crucial. Yet, a big issue stands out – the gender wealth gap. Women in the U.S. make only 83 cents for every dollar men earn¹. They also own just 32 cents for every dollar of wealth men have¹. This huge gap is a big hurdle for women’s financial freedom and power. But, what if we could tap into women’s financial strength? What if we could close this gap and make finances fair for everyone?

Key Takeaways

• Women earn 83 cents for every dollar earned by men, highlighting a significant gender pay gap.
• Black and Latina women in the US own only about 32 cents for every dollar of wealth owned by men.
• High-earning women report a 90% lack of confidence in their financial acumen, especially among women of color.
• Tailored financial planning is key to addressing the unique needs and aspirations of high-earning women.
• Socially responsible investing (SRI) and ESG criteria present opportunities for women to align their investments with personal values.

The Importance of Women’s Economic Empowerment

Women’s economic empowerment is key to achieving equality and women’s rights. It lets women work and enjoy social protection equally. They get to control their resources, time, and lives. They also have a bigger say in economic decisions².

When more women work, the economy grows. Companies do better with more women in leadership and jobs. This leads to better performance and growth².

Benefits of Closing the Gender Gap

Closing the gender gap could add USD 7 trillion to the global economy². But, sadly, one in ten women lives in extreme poverty. Women often lack social protection and are more likely to be hungry than men².

Current Status of Women’s Economic Equality

There’s still a 4% gap in bank account ownership worldwide³. Women are 8% less likely to own a phone and 20% less likely to own a smartphone in poorer countries³. The focus is on getting more women to have bank accounts, but phone ownership is also a big issue³.

The data shows women face big challenges in getting economic equality. We need to act fast to fix these issues²³⁴.

“When more women work, economies grow. An increase in female labor force participation – or a reduction in the gap between women’s and men’s labor force participation – results in faster economic growth.” – International Monetary Fund

Women and the World of Work

Women still face big challenges in the global workforce, even with recent progress. Over 2.7 billion women can’t choose jobs like men can⁵. This gender bias stops many women from getting ahead in their careers.

Legal Barriers and Gender Discrimination

Women are less likely to work than men worldwide, with a 30% gap since 1990⁵. They’re more likely to be jobless but face a bigger jobs gap, with 153 million more women needing work than men⁵. This gap comes from laws and social norms that limit their career choices and power.

Labor Force Participation and Employment Gaps

Most women work in informal, insecure jobs, making up 60% of the informal economy⁵. This means they earn less, have less job security, and lack social benefits. Fixing these gaps is key to empowering women economically and ensuring growth for all.

The data shows how women face ongoing gender inequality and discrimination at work. From pay gaps to job security, women are held back. We must tackle these issues to empower women and drive growth for everyone.

“If women participated equally in the economy, it could add $12 trillion to global annual GDP by 2025.”⁵

We need a broad plan to overcome gender gaps in work. This means fixing laws, offering equal chances, and creating more jobs. Empowering women in the workforce unlocks their economic potential and fosters sustainable growth⁵⁷⁶.

The Burden of Unpaid Care Work

Women, especially those from low-income, migrant, and racialized groups, do most of the unpaid care work worldwide⁸. If we valued their unpaid work, it would be worth up to 40% of some countries’ GDP⁸. By 2050, women will still do almost 2.5 more hours of unpaid care work daily than men⁸.

Disproportionate Share of Unpaid Domestic Work

Women spend about 51.6 minutes a day on unpaid care work, while men spend 26.4 minutes⁸. If we paid for caregiving, men would earn $2,335.93 and women $4,565.68 a year⁸. Unpaid caregiving is worth $305.01 billion for men and $626.57 billion for women⁸. This gap costs women an extra $321.56 billion a year⁸.

In 2021, 38 million people gave unpaid care to a family member or friend⁸. The value of unpaid care in 2021 was $600 billion, based on 36 billion hours of care⁸. 61% of caregivers are women, and 39% are men⁸. The peak caregiving age for both men and women is between 35 and 44⁸.

The global value of unpaid care and domestic work is nearly $11 trillion a year, says the ILO⁹. In the APEC region, women do nearly three times more unpaid care work than men⁹. The APEC Toolkit for Carers, released in December 2023, supports caregiving with evidence-based solutions⁹. It uses the “5R framework for decent care” by the ILO, focusing on valuing care, reducing care work, redistributing it, rewarding carers, and representing their voices⁹. Chinese Taipei’s Ministry of Education teaches equal unpaid care and domestic work distribution in textbooks to promote gender equality⁹.

Mothers providing unpaid care lose about $295,000 in employment-related costs over a lifetime¹⁰. Unpaid family caregiving cuts a mother’s lifetime earnings by 15%¹⁰. In Pennsylvania, lack of affordable childcare costs the economy over $6 billion a year¹⁰. Black mothers face high childcare costs and often don’t reduce work after having children¹⁰.

Challenges in Entrepreneurship and Business Ownership

Women entrepreneurs face big hurdles in starting and growing their businesses¹¹. They struggle with limited funding, balancing work and life, fear of failure, and not enough support¹¹. They also deal with gender inequality and lack access to important knowledge and networks¹¹.

One big challenge is getting funding¹². Women get about $49,712 on average, while men get $83,198¹². Also, 66% of women say it’s hard to get the funding they need¹². Women of color face even more hurdles, often being denied funds more than others¹².

• Women-owned businesses often operate in low-growth industries, making fundraising particularly challenging¹².
• Female founders only received 2% of venture capital received by venture-backed startups in 2022¹².
• During the pandemic, female-owned businesses were 5.9% more likely to close compared to male-owned businesses¹².

Despite these hurdles, women entrepreneurs are finding new ways to succeed¹². They use online lenders, crowdfunding, and other funding options¹². Building a strong support network and balancing work and life also helps¹².

“59% of women business owners believe they have to work harder for the same level of success as men.”¹²

We need to tackle the big barriers and push for gender equality in business¹¹. Giving women access to money, mentorship, and support can help them succeed¹¹. This can unlock the potential of women-owned businesses and boost the economy¹¹.

Access to Financial Services and Resources

Getting women equal access to financial services is key to their economic empowerment. Yet, they face big hurdles. The gap in bank account ownership is still wide, even though it’s getting smaller¹³. In poor countries, this gap is 6%, and worldwide, 4%, with 78% of men having bank accounts compared to 74% of women¹³.

Gender Gap in Bank Account Ownership

The gap in bank accounts has been a big issue for a long time. But, there’s been some good news. From 2014 to 2017, more men and women in poor countries got bank accounts¹³. Still, the gap in emerging markets stayed the same at 9 points since 2011¹³. It’s important to make sure women have the same access to financial services as men.

Barriers to Business Financing and Resources

Women who want to start or grow their businesses often struggle to get financing. Female-owned businesses make up 33% of the total finance gap for small and medium-sized enterprises in poor countries¹³. Not having enough assets to offer as collateral is a big reason why women can’t get loans¹³. If we could close this finance gap for women by 2020, it could increase income by 12% per person by 2030¹³.

New technologies and innovations in finance are helping women get better access to money and resources. For example, mobile money systems like M-Pesa in Kenya have really helped women financially, pulling 194,000 households out of poverty¹³. Digital credit in Kenya grew a lot, from 0.6% in 2016 to 8.3% in 2019, offering women another way to get money for their businesses¹³. Over six million Kenyans have taken out digital loans for their homes or small businesses¹³.

Worldwide, the World Bank’s Global Findex shows that digital financial services are helping women get into the financial system¹³. In Ethiopia, using data on women entrepreneurs has helped them get credit¹³. Laws like the GDPR in the European Union also help make sharing information safely in finance¹³.

Even with progress, there’s still a lot to do to bridge the gender gap in finance. We need to keep working on the big barriers, using technology, and making policies that include everyone. This is key to empowering women and supporting sustainable growth¹³¹⁴¹⁵.

Violence and Harassment: A Barrier to Economic Empowerment

Gender-based violence and harassment are big problems that stop women from getting ahead in the economy¹⁶. In many Pacific island countries, over half of women face violence, which is more than the world average¹⁶. In Vanuatu, women who work for themselves are 150% more likely to face violence than those who don’t¹⁶. This violence makes many women do unpaid work, which slows down income equality.

The costs of violence against women are huge¹⁶. In Port Moresby, Papua New Guinea, 55% of women and girls said they were attacked in the workplace¹⁶. In Fiji, domestic violence made 10 workdays lost per employee, affecting 47% of people¹⁶. In Papua New Guinea, violence at home and in the family cost companies over $2.1 million a year¹⁶. Violence hurts women’s work by causing disruptions, loss of confidence, and trouble focusing.

Gender-based violence and harassment stop women from joining the workforce and starting businesses¹⁷. It’s a big problem for women and girls, especially in poor areas¹⁷. Women struggle to own land or get loans to start businesses because of this violence¹⁷.

We need to tackle gender-based violence to help women reach their economic goals¹⁷. Groups that don’t focus on gender are changing to help women get into the economy better¹⁷. Creating a safe place for women is key to closing the wealth gap and letting them fully join the economy.

“Violence and harassment in the world of work affect women regardless of age, location, income, or social status. The economic costs to the global economy of discriminatory social institutions and violence against women is estimated to be approximately USD 6 trillion annually.”

¹⁶¹⁷¹⁸

Transforming Care Services for Decent Work

Women make up most paid care workers, including in health, education, and domestic work¹⁹. Despite their crucial role, they often earn less and their work is seen as unskilled and insecure¹⁹. By improving care policies and expanding services with fair work, we could create almost 300 million jobs by 2035. This would help reduce gender gaps in employment and bring big economic and social benefits²⁰. About 70 to 90 percent of these new jobs would go to women²⁰.

Investing in Care Infrastructure and Job Creation

The care economy supports 381 million jobs worldwide, with paid care work making up about 11.5% of all jobs²¹. Two-thirds of these care workers are women²¹. Care jobs need more workers than construction jobs and have more women²¹. Expanding care services could give more jobs to women²¹.

Childcare programs help women get jobs, with some studies showing a 5 to 47 percent increase²⁰. In Chile, free after-school care made mothers more likely to work²⁰. In Kenya, childcare vouchers helped women find jobs²⁰. But, childcare’s effect on women’s and families’ income is mixed, with only a few studies showing positive results²⁰.

Investing in care infrastructure and creating good care jobs can lessen gender gaps in work²⁰²¹. By changing care services, we can empower women and support sustainable economic growth.

“Changing social and economic structures is crucial to reducing the disproportionate share of unpaid care work carried out by women and girls and redistributing care responsibilities equitably between genders.”¹⁹

The COVID-19 pandemic showed how vital the care economy is and the need for care infrastructure investment²¹. By focusing on transforming care services and creating fair care jobs, we can empower women, promote gender equality, and drive sustainable economic growth²⁰.

Childcare programs boosted women’s employment in five studies, with increases from 5 to 47 percent²⁰. In Chile, free after-school care helped mothers work more²⁰. In Kenya, childcare vouchers made women more likely to work²⁰. However, childcare’s impact on income was mixed, with only one study showing positive effects²⁰. In Egypt, few women used childcare subsidies due to barriers²¹. In India, daycare centers had limited effects on employment and income²¹. In Uganda, childcare subsidies boosted men’s work but not women’s earnings²¹. In Uganda, single mothers worked less but earned the same with childcare subsidies²¹. Childcare helped grandparents and siblings in Brazil find jobs²¹. Offering childcare to all children made mothers work more, especially if the youngest was in daycare²¹. Women moved to better-paying jobs with fixed hours when given childcare subsidies²¹. During the pandemic, there was a rise in unpaid work for women and men, showing the crisis’s unequal impact¹⁹. Care sectors need more workers than construction and have more women²¹. Expanding care services could give more jobs to women²¹. The care economy includes 381 million jobs, with 11.5% being paid care work²¹. Two-thirds of these care workers are women²¹. Unpaid care work involves about 16.4 billion hours a year, which is like 2 billion jobs, with women doing most of it¹⁹. Women do most unpaid care work worldwide, spending three times as much time on it as men and boys¹⁹. Care work is a big part of women’s work globally. Many care jobs are seen as unskilled or part of women’s traditional roles¹⁹. Changing social and economic structures is key to reducing unpaid care work by women and girls and sharing care tasks fairly between genders.

personal finance for women

Personal finance for women is key to financial empowerment and closing the gender wealth gap²². Woven offers unique prompts, live events, and a content library to help women and nonbinary folks manage their money²². Angela Rozmyn and Regina Moore founded Woven, creating a supportive space for members to talk about money, share tips, and support each other²².

Women’s personal finance blogs are becoming more popular²³. They focus on paying off debt, investing wisely, starting businesses, and buying homes²³. These blogs offer great financial advice and build a community around shared experiences²³. Top female bloggers even make good money, showing how powerful women can be financially²³.

The financial world for women is changing for the better²⁴. Women get most college degrees, add $7.6 trillion to the U.S. GDP, and own over 9.9 million businesses²⁴. Millennials, especially millennial women, are taking charge of their finances, with 72% making financial decisions at home²⁴. Yet, the wealth gap between men and women remains, and confidence in managing money can vary²⁴.

As women take control of their finances, the potential for growth and change is huge²². The Woven community and other resources are leading the way to a fairer financial future²².

“When women can reclaim agency and gain equal status, the entire economy can improve dramatically.”

The path to financial empowerment for women is long but clear²³. With education, support, and a focus on equality, women are set to change the financial world and secure a better future for everyone²³.

Bridging the Digital Divide

The digital divide is still a big issue, with women having only 77% of the legal rights men do²⁵. In 2022, the push for equal treatment of women under the law slowed down a lot²⁵. This gap is made worse by women not owning smartphones, not knowing how to use the internet, and not having access to it²⁵.

There are many reasons why women can’t fully join the digital world. They might not know about money matters, don’t have ID, or follow certain social rules²⁵. Around the world, there’s a lack of data on women, few agents to help them, and products that don’t meet their needs²⁵. Banks also offer products that don’t really help women, keeping the gap between them and men wide²⁵.

Gender Gap in Internet Access and Technology

The gap in tech use between men and women is still big. Most women entrepreneurs in poor and middle-income countries use the internet a lot, mostly with smartphones²⁶. There’s also a big market for digital tools for women entrepreneurs in these countries, worth $30 billion USD²⁶.

But, low-income women face big challenges. They can’t afford devices or internet²⁷. Social norms and gender roles also stop them from using technology and learning about it, keeping the gap wide²⁷. Without good education, they don’t get the skills needed for the digital world²⁷.

It’s important to make sure women and girls have the same access to tech and online resources²⁵. We need to tackle the special challenges women, especially those who are poor, face. We must create a digital world that lets them reach their full potential.

“54.1% of women entrepreneurs expressed the intention to spend more on digital business tools in the previous year, with a projected 37.2% growth in 2024.”²⁶

We need money from banks, fintech, and the government to help women entrepreneurs use digital financial services more²⁶. By fixing the big barriers and offering solutions made just for women, we can close the digital divide. This will let women fully join the digital economy²⁵²⁶²⁷.

Conclusion

Promoting gender equality and women’s economic empowerment is key to reaching the 2030 Agenda for Sustainable Development and the Sustainable Development Goals²⁸. By closing the gender gap, we could boost the global economy a lot. Companies also gain by hiring and promoting more women²⁹.

But, we face big challenges like legal hurdles, gender bias, unpaid care work, and limited financial services³⁰. We need to work on these issues and invest in the care economy and digital tools. This is vital for women’s financial empowerment and closing the gender wealth gap²⁹.

To create a fair and prosperous future, we must address the complex barriers. We should improve women’s financial knowledge, give them access to resources, and encourage them to join the workforce. Keeping up the effort to empower women economically helps them, their families, communities, and the world economy too²⁹.

Source Links

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